JAN- MARCH 20218The global medical device market has been growing by over 4% per year (CAGR) since 2015 and reached US$457 billion in sales in 2019. The market is estimated to decline in 2020 due to the negative impact of COVID-19 pandemic on manufacture and supply chain. The United States remains the largest contributor and consumer, currently accounting for 44% of medical research funding and 40% of total sales globally. However, is it sustainable in the market landscape today and tomorrow? As emerging economics start to enter the medical device market, we believe that globalization is the pathway to success in the future.The emerging economics are bringing both opportunities and competition into the medical device market. The growing and aging population, as well as the increasing prevalence of chronic diseases, have been the main drivers for healthcare expenditures in the emerging markets. The medical device markets in China and India are projected to be over US$200 billion (ranking #2) and US$40billion (ranking #5), respectively, in 2030. Other emerging markets should consistently be evaluated as they continue to grow over the coming decade. On the other hand, medical device companies in these emerging markets have long been overlooked. In 2015, twelve of the top 20 medtech companies based on sales are from the US, followed by Germany (2), Switzerland (2), The Netherlands (1), France (1), Japan (1) and UK (1). None of the major players are from emerging countries.The imbalance between the purchasing power and innovation power is pending for change in the future dynamic environment. Diverting our attention from the medtech THE GLOBALIZATION OF MEDICAL DEVICES AND THE ROLE OF US ACADEMIC MEDICAL CENTERSKate Y. Jiang, MBA, PMP and Heitham T. Hassoun, MD, Cedars-Sinai Health System, Los AngelesByIn My Opinion
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